Bitcoin Analysis January 5, 2018

Bitcoin drifted a bit lower during the trading session on Thursday, as traders continue to bounce around the head of the nonfarm payroll number coming out of the United States. This will have a drastic effect on the US dollar, and by extension Bitcoin. It looks currently as if we are consolidating still, with the $13,000 level being the “floor”, and the $16,000 level being the ceiling. Because of this, back and forth range bound trading strategies seem to be the best way to deal with Bitcoin currently.

BTC/JPY

Bitcoin fell a little bit against the Japanese yen after initially rallying, but in the Japanese market, it looks as if Bitcoin is trying to make a move to the top of the consolidation range at ¥1.9 million. If we can break above there, we will challenge the ¥2 million level, and a move above there becomes more of a “buy-and-hold” scenario. Until then, buying the dips continues to be the best way to trade.